Vulcan Minerals Inc.
TSX VENTURE : VUL

Vulcan Minerals Inc.

February 17, 2011 14:04 ET

Vulcan Minerals Inc.: Exploration Update

ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwire - Feb. 17, 2011) - Vulcan Minerals Inc. ("the Company") (TSX VENTURE:VUL) is pleased to provide the following update:

PARSONS POND

The Company has participated in the Parsons Pond drilling project operated by Nalcor Energy Oil and Gas (Nalcor). Nalcor and partners have drilled two deep wells at Parsons Pond, namely Seamus #1 and Finnegan #1. As previously announced both wells encountered significant gas shows while drilling. Seamus #1 was re-entered for testing operations, the results of which are currently being evaluated. Given the partnership's desire to re-evaluate the oil potential of the area, the drilling of the third well (Darcy #1) on exploration permit 03-102 will not proceed at this time. Based on current information the Darcy location is considered to be gas prone and will provide little new data regarding the basin's oil potential. As a result the Stoneham Rig #11 has been released from the program. The Company owns a 7.39% working interest in exploration permit 03-102.

Nalcor has reiterated its commitment to the exploration of the Parsons Pond area and that the current evaluation stage will determine the future direction of activities. Vulcan supports the decision of the partnership and is advocating increased attention to evaluating the shallow oil potential at Parsons Pond as evidenced by numerous surface oil seeps and oil in shallow historic wells.

BAY ST. GEORGE

The company has processed and completed a preliminary interpretation of the 2010 seismic data. The overall conclusion is that the new data further confirms the geologic model used to interpret the evolution of the basin. Several target areas have been identified for drilling. Specific locations will require further detailed analysis. They consist of both shallow (<1500m) and deeper targets. Most significantly, potential petroleum traps have been identified in the oil prospective Flat Bay area.

It is the Company's intent to drill at least one hole in this area this year. An ongoing evaluation of the accumulated geological and geophysical data base is underway towards outlining the distribution of the oil at Flat Bay. Part of this new data set includes the GORE geochemical survey, preliminary results for which are currently being received and interpreted.

OFFSHORE LABRADOR

The Company has received the recently acquired new seismic data from the operator, Investcan Energy Corporation, (Investcan), as per an earn-in agreement in respect to Exploration Licence EL 1107, offshore Labrador. Further to that agreement the Company has transferred a 20% working interest in that licence to Investcan in consideration for being carried on the costs of the acquisition survey to a total project cost of $8.2 million. The Company retains a 30% working interest in the licence. The joint venture is currently having the data processed for interpretation. EL 1107 is in good standing until November 2014 and is open to an additional extension until November 2017 if a well is drilled during its current term.

Vulcan is a diversified junior exploration company focused on petroleum exploration in the under-explored western Newfoundland and Labrador areas and also holds mineral interests in areas strategic to its operations in Newfoundland and Labrador.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

There can be no assurance that forward-looking information will prove to be accurate. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from any conclusions, forecasts or projections described in the forward-looking information. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

Shares Issued: 57,176,129

Contact Information